MIAMI–(BUSINESS WIRE)–Univision Communications Inc., the leading Hispanic media company in the U.S., today confirmed that its Board of Directors is reviewing strategic options for the company.
The Board of Directors of Univision stated: “After a successful year under the leadership of our new management team, including a complete refocus on our core Spanish-language media business, it is abundantly clear that Univision’s strategic value has never been greater. The U.S. Hispanic audience represents one of the very few certain growth opportunities in today’s media marketplace, and Univision is ideally positioned. We have the top-rated local news programming in any language in many top markets, we frequently beat the “Big Four” broadcast competition in prime time, and we have a best-in-class sports franchise. This leadership position, along with the increasing recognition that the Hispanic population is driving significant U.S. economic growth, makes Univision a unique media property. The demographic and economic drivers of Hispanic consumers will spur growth in media consumption and spending for years to come, and we want Univision to be in the best position to capitalize on this historic opportunity. As the last major independent broadcast media company in the U.S., a market where scale and strength matter, Univision has the fundamentals for continued growth on its own or with a partner – and after careful consideration, the Board and management team have concluded the time is right to explore strategic options.”
Vince Sadusky, Chief Executive Officer of Univision, said, “Univision is strategically, operationally and financially strong, having refocused on serving our core consumers, as well as our advertising and distribution partners. Over the past year, Univision has gained momentum as it has divested non-core assets; strengthened programming; secured long-term distribution deals and valuable sports rights; increased investment in news, sports, local, and digital offerings; and materially strengthened its balance sheet. The current environment favors scale and cross-platform offerings, and we believe those major media companies that fail to recognize and capitalize on this unique opportunity in Spanish-language media will be left behind.”
Univision offers unparalleled access to the coveted U.S. Hispanic demographic, a population expected to grow from 57 million to 77 million by 2030. With GDP at $2.1 trillion – equivalent to 7th largest economy in the world – the U.S. Hispanic audience represents one of the few remaining growth opportunities for advertisers and distributors.
Univision is the leading entertainment, sports and news source for Hispanic America. Its broad multi-platform Spanish-language portfolio includes the #1 broadcast and cable networks, #1 website, #1 influencer network and #1 local TV and radio station group. With a diversified multi-platform media portfolio dedicated to informing, empowering and entertaining Hispanic America, Univision is the most recognized and trusted media brand among Latinos in the U.S.
There can be no assurances as to the timing or outcome of this review. Univision does not intend to disclose or comment on developments related to its review unless and until the Board has completed its review, or otherwise determined that further disclosure is appropriate or beneficial.
Univision has engaged Morgan Stanley & Co. LLC, Moelis & Company LLC and LionTree LLC as financial advisors to assist with the process.
Certain statements contained within this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases you can identify forward-looking statements by terms such as “anticipate,” “plan,” “may,” “intend,” “will,” “expect,” “believe,” “optimistic” or the negative of these terms, and similar expressions intended to identify forward-looking statements. These forward-looking statements, including those pertaining to the review of strategic options for the Company and its business, reflect the Company’s current views with respect to future events, are based on assumptions and are subject to risks and uncertainties, and events could differ materially from what presently is expected. Also, these forward-looking statements present our estimates and assumptions only as of the date of this press release. The Company undertakes no obligation to modify or revise any forward-looking statements to reflect events or circumstances occurring after the date that the forward-looking statement was made. Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include uncertainties as to the structure, terms and timing of any strategic transaction resulting from the strategic review and whether it will be completed, the impact of any such strategic transaction on the Company’s businesses, whether the strategic benefits of any such strategic transaction can be achieved, general economic conditions, cancellations, reductions or postponements of advertising or other changes in advertising practices among the Company’s advertisers; any impact of adverse economic conditions on the Company’s industry, business and financial condition, including reduced advertising revenue; changes in the size of the U.S. Hispanic population, including the impact of federal and state immigration legislation and policies on both the U.S. Hispanic population and persons emigrating from Latin America; lack of audience acceptance of the Company’s content; varying popularity for programming, which the Company cannot predict at the time the Company may incur related costs; the failure to renew existing carriage agreements or reach new carriage agreements with multichannel video programming distributors (“MVPD”) on acceptable terms or otherwise and the impact of such failure on pricing terms of, and contractual obligations under, carriage agreements with other MVPDs; consolidation in the cable or satellite MVPD industry; the impact of increased competition from new technologies; changes in the Company’s strategy going forward; competitive pressures from other broadcasters and other entertainment and news media; damage to the Company’s brands, particularly the Univision brand, or reputation; fluctuations in the Company’s quarterly results, making it difficult to rely on period-to-period comparisons; failure to retain the rights to sports programming to attract advertising revenue; the loss of the Company’s ability to rely on Televisa for a significant amount of its network programming; the failure of the Company’s new or existing businesses to produce projected revenues or cash flows; failure to monetize the Company’s content on its digital platforms; the Company’s success in acquiring, investing in and integrating complementary businesses; failure to further monetize the Company’s spectrum assets; the failure or destruction of satellites or transmitter facilities that the Company depends on to distribute its programming; disruption of the Company’s business due to network and information systems-related events, such as computer hackings, viruses, or other destructive or disruptive software or activities; inability to realize the full value of the Company’s intangible assets; failure to utilize the Company’s net operating loss carryforwards; the loss of key executives; possible strikes or other union job actions; piracy of the Company’s programming and other content; environmental, health and safety laws and regulations; Federal Communications Commission (“FCC”) media ownership rules; compliance with, and/or changes in, the rules and regulations of the FCC; new laws or regulations concerning retransmission consent or “must carry” rights; increased enforcement or enhancement of FCC indecency and other programming content rules; the impact of legislation on the reallocation of broadcast spectrum which may result in additional costs and affect the Company’s ability to provide competitive services; net losses in the future and for an extended period of time; the Company’s substantial indebtedness; failure to service the Company’s debt or inability to comply with the agreements contained in the Company’s senior secured credit facilities and indentures, including any financial covenants and ratios; the Company’s dependency on lenders to execute its business strategy and its inability to secure financing on suitable terms or at all; any impact from the discontinuance of the London Interbank Offered Rate; volatility and weakness in the capital markets; and risks relating to the Company’s ownership. Actual results may differ materially due to these risks and uncertainties. The Company assumes no obligation to update forward-looking information contained in this press release.
About Univision Communications Inc.
As the leading Hispanic media company in the U.S., Univision Communications Inc. entertains, informs and empowers U.S. Hispanics with news, sports and entertainment content across broadcast and cable television, audio and digital platforms. The company’s top-rated media portfolio includes the Univision and UniMás broadcast networks, as well as cable networks Univision Deportes Network (UDN) and Galavisión. Locally, Univision owns or operates 65 television stations in major U.S. Hispanic markets and Puerto Rico. Additionally, Uforia, the Home of Latin Music, encompasses 58 owned or operated radio stations, plus 89 affiliates, a live event series and a robust digital audio footprint. The company’s prominent digital assets include Univision.com, streaming service Univision Now, the largest Hispanic influencer network and several top-rated apps. For more information, visit corporate.univision.com.